This funding refers to the process of acquiring the necessary capital to purchase, develop, renovate, or refinance a property or portfolio of properties so that you can generate a return on investment. This capital can come from various sources, and the strategy typically involves a blend of debt and equity.
Key aspects of real estate investment funding include:
- Securing Capital: The primary goal is to obtain the money needed to complete a transaction, whether from a single source or multiple contributors.
- Sources: Funding can be broadly categorized into:
- Debt Financing: Borrowing money from a lender (such as Nexton Financial) with the agreement to repay the loan with interest. This is a common form of leverage in real estate investing.
- Equity Financing: Raising capital in exchange for an ownership stake in the property or investment entity. This can come from personal cash, partners, or pooled investment vehicles (we also work with many Private Lenders who are willing to provide funds for equity into your project)
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